Startup companies go by developing, promoting and sustaining operating system to support the implementation of the company’s operations. This free creative human mind to focus on much more valuable innovations and problem solving activities. Invest time and resources to develop automated systems and processes and even outsourced functions to third parties creates a growth engine for the company.
Systems allow companies to take on more work and process it efficiently with marginal additional costs. As you develop your business, you determine strategies for product development, production, delivery services, logistics, marketing, distribution and much more. In addition, consider the system for administrative and financial management, human resource management, regulatory compliance and reporting.
rely too much on people to perform most of the work in your company, you are likely to find the cost of that approach. Employing individuals can be costly and time consuming. People have limited time capabilities so that incremental investment is greater. People need training; they are more prone to errors and they tend to have a vacation often. People are usually the highest cost, most of the income statement. A well-designed system can defer much of this cost while providing efficient growth platform.
This does not suggest that you never employ people in your business. People will run the business and successful business depend on the people who bring them. People can ingeniously solve problems, find new products, serve and support customers and generally improve the company’s operations in a manner that automated systems can not. The emphasis here is on repetitive work reliably, accurately, and in a high volume without interventions to the process itself.
A system need not be a digital conversion process. A simple “how to” manual of the main tasks of the office, saving people time and ensures consistency. It also allows appointed to follow the correct procedure from the beginning. Such manuals or guidelines should change as the business develops and processes evolve and grow. As certain groups work become repetitious and require processing of large amounts of work, computer automation will be necessary.
industry associations or standardization bodies may have produced the industry standard best practices for your area of business. Adopting appropriate standards can significantly improve function by optimizing the process to increase your ability to connect to suppliers, partners and customers. Many such standards are developed experience and expertise in large companies with many years of experience and large teams of engineers.
Another important area where systems are useful in the field of regulatory compliance. Systems providing standardized methods for compliance with regulations to protect your business from liability of violations or questionable practices. Some areas, such as accounting, are essentially the same in all companies, but security and privacy and reporting the government can be more accurate in the industry. Ask your law, accounting, and IT professionals in the relevant regulatory area.
Start business with a bias towards understanding the work can be handled better by the system. Assessment before you hire a new person to be sure that the system could not handle the work. This may not eliminate the need to hire someone, but it will make the company more productive. As the business grows, this attitude will produce significant returns and more work is performed efficiently with a system that you encountered along the way.